Boss Trevor Moore denied that continuing to sell the ‘worthless bits of paper’ over Christmas was the next mis-selling scandal, despite the firm’s knowledge before Christmas that it would not meet its banking obligations.

He said: ‘We were aware as directors of this very issue and we have been monitoring both sales and redemption of gift vouchers.

‘We had a high level of redemptions in the weeks after Christmas. When we made the announcement about not meeting our banking covenants, we still had a chance to address the issue with the banks so it’s not at all any form of mis-selling and we’re very clear what our obligations are.’

When pushed on whether customers had a reasonable expectation for their vouchers to be honoured, he said they had been ‘working hard over the last few weeks to make sure the business continues’ and only found they were unable to do so on Monday leading to the withdrawal of gift vouchers.

Shadow business secretary Chuka Umunna told Metro: ‘Customers who have HMV gift cards and vouchers will be hugely disappointed and concerned they are now unable to use them.

‘I hope administrators will work alongside consumer groups so a solution can be found and no consumers end up out of pocket.’

But the Department for Business insisted there was little they could to help those who spent money on vouchers, insisting that former employees should be paid first.

HMV announced a month-long sale on Saturday (Picture: PA)

The HMV chief executive Mr Moore said they had a ‘very limited supply’ of two key tablet brands, but refused to name them.

He had warned before Christmas that the chain would struggle to meet its expectations for the year to April, therefore not meeting the terms of its bank loans.

Like-for-like sales fell 10.2 per cent in the 26 weeks to October 27 last year, with pre-tax losses narrowing to £36.1million, compared to £50.1million the previous year, but shares still tumbled by 39 per cent.

Mr Moore said he was ‘confident’ of a successful outcome’ for HMV and said the business needed to ramp up its online offering.

He did not rule out a move to online only and said that was a point to be discussed with the brand’s potential buyers.

Mr Moore said: ‘We remain convinced we can find a successful business outcome. The intention is to continue to trade the stores.

‘We will be working tirelessly over the coming weeks to try and find a successful outcome for the business. Hopefully we will have good news to report in the days and weeks ahead.’

In January 2011 suppliers including Universal Music came to HMV’s rescue to help it cut its debt, while the retailer also sold off book chain Waterstones and the Hammersmith Apollo venue.

HMV has suffered in a declining market for music, film and games sales, coupled with the fact that physical storage mediums such as CDs and DVDs are becoming obsolete as the world switches to downloading and streaming media online.

Major high street shops are rapidly dropping off the retail landscape. Jessops was the first casualty of the year, closing last week with 1,300 jobs in jeopardy.

Before Christmas, Comet – another major household name – closed after suffering from fewer people buying big-ticket items and increasing online competition.

HMV announced a month-long sale on Saturday, but denied it was the first step towards administration.

A shopper carries a bag from an HMV shop on Oxford Street in London January 12, 2013. Britain’s last major music retail chain is due to announce its results shortly.

A shopper carries a bag from an HMV shop on Oxford Street in London January 12, 2013. Britain's last major music retail chain is due to announce its results shortly.

A shopper carries a bag from an HMV shop on Oxford Street in London January 12, 2013. Britain's last major music retail chain is due to announce its results shortly. REUTERS/Suzanne Plunkett

An HMV store in north London, as the major high street record store is poised to call in administrators, according to reports.

An HMV store in north London, as the major high street record store is poised to call in administrators, according to reports.

An HMV store in north London, as the major high street record store is poised to call in administrators, according to reports. Yui Mok/PA Wire

Movies are seen on sale in a branch of British retail music chain HMV on Oxford Street in London January 14,

Movies are seen on sale in a branch of British retail music chain HMV on Oxford Street in London January 14,

Movies are seen on sale in a branch of British retail music chain HMV on Oxford Street in London January 14, 2013. Music and DVD retailer HMV may announce as soon as Monday that it will call in the administrators, according to a source close to the company and media reports, bringing the curtain down on one of Britain's best-known high street stores. REUTERS/Chris Helgren

Handout photo issued by EMI of The Queen Coronation Route in1953 passes the HMV store in London’s Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs. See PA story CITY HMV.

Handout photo issued by EMI of The Queen Coronation Route in1953 passes the HMV store in London's Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs. See PA story CITY HMV.

Handout photo issued by EMI of The Queen Coronation Route in1953 passes the HMV store in London's Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs. See PA story CITY HMV. EMI/PA Wire

Handout photo dated 26/04/2000 issued by HMV of Beatles producer Sir George Martin with Nipper the dog, at the unveiling of a plaque, in London’s Oxford Street, to record the role the record store played in bringing the Beatles to fame, as the ailing music chain HMV

Handout photo dated 26/04/2000 issued by HMV of Beatles producer Sir George Martin with Nipper the dog, at the unveiling of a plaque, in London's Oxford Street, to record the role the record store played in bringing the Beatles to fame, as the ailing music chain HMV

Handout photo dated 26/04/2000 issued by HMV of Beatles producer Sir George Martin with Nipper the dog, at the unveiling of a plaque, in London's Oxford Street, to record the role the record store played in bringing the Beatles to fame, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs. HMV/PA Wire

Handout photo issued by EMI of the press button listening panel in 1953 at the HMV shop in London’s Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the

Handout photo issued by EMI of the press button listening panel in 1953 at the HMV shop in London's Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the

Handout photo issued by EMI of the press button listening panel in 1953 at the HMV shop in London's Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs. See PA story CITY HMV. : EMI/PA Wire

Handout photo issued by EMI of Sir Edward Elgar (6th from Left) at the HMV Store opening luncheon in July 1921 at the HMV shop in London’s Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops

Handout photo issued by EMI of Sir Edward Elgar (6th from Left) at the HMV Store opening luncheon in July 1921 at the HMV shop in London's Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops

Handout photo issued by EMI of Sir Edward Elgar (6th from Left) at the HMV Store opening luncheon in July 1921 at the HMV shop in London's Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs. See PA story CITY HMV. Photo credit should read: EMI/PA Wire

Undated handout photo issued by HMV of the famous HMV trademark, the original 1898 His Master’s Voice oil painting, as the ailing music chain HMV has lost its battle for survival

Undated handout photo issued by HMV of the famous HMV trademark, the original 1898 His Master's Voice oil painting, as the ailing music chain HMV has lost its battle for survival

Undated handout photo issued by HMV of the famous HMV trademark, the original 1898 His Master's Voice oil painting, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. PRESS ASSOCIATION Photo. Issue date: Tuesday January 15, 2013. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs. See PA story CITY HMV. Photo credit should read: HMV/PA Wire NOTE TO EDITORS: This handout photo may only be used in for editorial reporting purposes for the contemporaneous illustration of events, things or the people in the image or facts mentioned in the caption. Reuse of the picture may require further permission from the copyright holder.

Undated handout photo issued by HMV of the famous HMV trademark, the original 1898 His Master’s Voice oil painting, as the ailing music chain HMV has lost its battle for survival

Undated handout photo issued by HMV of the famous HMV trademark, the original 1898 His Master's Voice oil painting, as the ailing music chain HMV has lost its battle for survival

Handout photo issued by EMI of the shop listening boots in the 1930's at the HMV shop in London's Oxford Street, as the ailing music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff. The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs. See PA story CITY HMV. Photo credit should read: EMI/PA Wire

A lookalike of “Nipper” the HMV dog. 07/09/99: HMV bosses have launched a nationwide search for a new Jack Russell to pose as Nipper. After 10 years in the job the current dog is to retire and the company wants to find a replacement. * …who loves crowds and being treated as a celebrity. Nipper had earlier featured in the painting His Master’s Voice by artist Francis Barraud

A lookalike of "Nipper" the HMV dog. 07/09/99: HMV bosses have launched a nationwide search for a new Jack Russell to pose as Nipper. After 10 years in the job the current dog is to retire and the company wants to find a replacement. * ...who loves crowds and being treated as a celebrity. Nipper had earlier featured in the painting His Master's Voice by artist Francis Barraud

A lookalike of "Nipper" the HMV dog. 07/09/99: HMV bosses have launched a nationwide search for a new Jack Russell to pose as Nipper. After 10 years in the job the current dog is to retire and the company wants to find a replacement. * ...who loves crowds and being treated as a celebrity. Nipper had earlier featured in the painting His Master's Voice by artist Francis Barraud (shown in background) and both the phrase and image were adopted by the Gramophone Company. 23/01/2000: EMI, who hold a 43% stake in the HMV group, has confirmed it is in talks with Time Warner to merge their music divisions, creating the world's largest music company.

Edward Elgar, centre, during a luncheon given during the opening of the first HMV music store at number 363 Oxford Street, in London on July 20, 1921.

In this image made available Tuesday Jan. 15, 2013, by EMI Trust, showing famed English composer Edward Elgar, centre, during a luncheon given during the opening of the first HMV music store at number 363 Oxford Street,

In this image made available Tuesday Jan. 15, 2013, by EMI Trust, showing famed English composer Edward Elgar, centre, during a luncheon given during the opening of the first HMV music store at number 363 Oxford Street, in London on July 20, 1921. British music and entertainment retailer HMV admitted defeat on Tuesday Jan. 15, 2013, after more than 90-years of trading on the U.K. high street, suspending trading in its shares and calling in administrators to try to salvage any viable parts of the business. (AP Photo / EMI Trust)

The HMV music store at 363 Oxford Street in central London, in this photo dated around 1920s, in this photo made available Jan. 15, 2013, by EMI Trust.

The HMV music store at 363 Oxford Street in central London, in this photo dated around 1920s, in this photo made available Jan. 15, 2013, by EMI Trust.

The HMV music store at 363 Oxford Street in central London, in this photo dated around 1920s, in this photo made available Jan. 15, 2013, by EMI Trust. (AP Photo/EMI Trust)

The HMV music store at 363 Oxford Street in central London, in this photo dated 1922, in this photo made available Tuesday Jan. 15, 2013, by EMI Trust.

The HMV music store at 363 Oxford Street in central London, in this photo dated 1922, in this photo made available Tuesday Jan. 15, 2013, by EMI Trust.

The HMV music store at 363 Oxford Street in central London, in this photo dated 1922, in this photo made available Tuesday Jan. 15, 2013, by EMI Trust. (AP Photo/EMI Trust)

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File photo dated 14/08/84 of a lookalike of Nipper the HMV dog at the launch of a nationwide search for a new Jack Russell to pose as Nipper as the entertainment store HMV has become the latest high street casualty as it called in administrators. PRESS ASSOCIATION Photo. Issue date: Tuesday January 15, 2013. Following discussions among the music retailer's directors, the company last night released a statement announcing it was ceasing trading in ordinary shares immediately - and appointing accountancy giant Deloitte to take control. See PA story CITY HMV. Photo credit should read: PA/PA Wire